EBRDPredictsRussianEconomicSlowdownin2012-2013

The European Bank for Reconstruction and Development (EBRD) said in a revised forecast that the Russian economy will grow more slowly than it previously projected reflecting weaker internal and external demand and growing capital outflow.

The European Bank for Reconstruction and Development (EBRD) said in a revised forecast that the Russian economy will grow more slowly than it previously projected reflecting weaker internal and external demand and growing capital outflow.

“On current trends, GDP growth is expected to slow to 3.2 percent in 2012 and pick up slightly to 3.3 percent in 2013,” EBRD said in its Regional Economic Prospects report on Thursday.

The EBRD findings suggest that “political and economic uncertainty [in Russia] continues to affect the investment climate,” as net capital outflows amounted to around $57 billion during the first nine months of 2012.

The World Bank and the International Monetary Fund (IMF) have also predicted a looming economic slowdown in Russia during the same period.